Long term contract price of uranium is over $USD 60 per lb
Let's say they prove up 250m lbs
250m x 60/lb = $USD 15 billion. I have heard in ground is normally around 10% of this - but because this is the richest lbs per tonne I will use 15%, which gives an enterprise value of $USD 2.25 billion. Converted at 0.8 = $AUD 2.81billion
It is altogether feasible that they could prove 300m lbs, in which case their valuation would run to $AUD 3.375 billion
The biggest risk IMO is being taken over BEFORE these have been proven up. This lets a company value EXT at somewhere between current and (let's say) the 250m lbs
Stephen Dattels is able to block compulsory acquisition (which cuts in at 90% of shares) with his 13% beneficial ownership.
A penny for his "real" thoughts - or those of any of the real power brokers!!
EXT Price at posting:
$5.80 Sentiment: Buy Disclosure: Held
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